§ 134-369. Application for transfer of franchise certificate, facilities or control.

(a)

The board has final order authority under this section. When a utility proposes to sell, assign, or otherwise transfer its franchise certificate, its system facilities or any portion thereof, or majority organizational control, the franchisee must apply to the authority for prior determination and approval from the authority that the proposed sale, assignment, or other transfer is in the public interest and that the buyer, assignee, or any other transferee can and will fulfill the commitments, duties, and obligations, and of the existing utility. The minimum filing requirements shall be as specified by rules of the board.

(b)

The transferor shall remain liable for any outstanding regulatory assessment fees, fines, or refunds of the utility due to the county.

(c)

The application fee may be waived is the proposed transferee is a governmental agency.

(d)

Authority determinations. Following a determination by preliminary order of the authority that the application is complete, the board may grant, deny, or amend the preliminary order or application for any for transfer upon such conditions as it deems proper, and after requiring such further relevant information as it deems necessary. The authority and the board may consider whether:

(1)

The application is made in good faith;

(2)

The transferee has sufficient resources to serve the area for which the transfer is sought;

(3)

The transferor utility is in regulatory compliance;

(4)

The known and projected economic impact on the utility's customer base and the utility's future rates, fees and charges;

(5)

The application conflicts with the county's master land use plan, including capital improvements elements.

(e)

Transfer to homeowners' association. Transfers to homeowners' association or any similar group shall be subject to the above stated provisions, plus the following additional provisions:

(1)

The transferee shall be a corporation not-for-profit organized under the laws of the State of Florida. All users of the utility service(s) of the utility must be members of the corporation and be entitled to one vote regarding the affairs of the corporation, including the rates, fees and charges to be charged by the utility.

(2)

The members of the corporation must have voted to purchase or otherwise acquire the franchise not more than 120 days prior to the filing of the application for transfer. The majority vote required shall be not less than the percentage required by the corporate charter and/or by-laws of the corporation, and in no case less than 50 percent of all members, plus one member.

(f)

Transfer to governmental agency. An application shall be processed in the same manner as provided in section 134-354 except that the sale or any other transfer of a franchise certificate or facility, in whole or in part, to any governmental agency shall, absent compelling reasons against, be approved as a matter of right; however, the governmental agency shall, prior to taking any official action, obtain from the utility or the authority (with respect to the facilities to be transferred) the most recent available income and expense statement, balance sheet, and statement of rate base for regulatory purposes, plus contributions-in-aid-of-construction and other contributed assets. Effective at the time of the closing on any such sale or other transfer, any request for rate relief pending before the authority, authority shall automatically be deemed to have been withdrawn. Interim rates, if previously approved by the authority, must be discontinued and any money collected pursuant to interim rate relief must be refunded to the customers of the utility with interest.

(g)

The authority may establish the then existing rate base for a utility in its preliminary order to approve a sale, assignment, or any other transfer thereof, except no rate base need be established for any transfer to any governmental agency.

(h)

Any person, company or organization that obtains ownership or control over any system or any part thereof by any means, including through foreclosure of a mortgage or other encumbrance, must continue all utility service without interruption and shall remove or dismantle any portion of the system previously dedicated to public use which might impair the ability to provide existing service and service committed to.

(i)

Discretionary public hearing. At its discretion, the authority and/or the board may hold a public hearing to consider a completed application for any such transfer.

(Ord. No. 96-6, § 1-19, 2-27-96)